Which of the Following Does NOT Require an Adjusting Entry

question 21

Multiple Choice

Which of the following does NOT require an adjusting entry?

• A) Inventory discrepancies
• B) Expired Insurance
• C) Collection of money on account
• D) Depreciation of Equipment

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Definitions:

Accounting Profits

The total revenue of a company minus the explicit costs, not including opportunity costs, showing the financial performance.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs.

Speeding Ticket

A penalty issued by law enforcement to a driver who is found to be exceeding the legal speed limit.

Revenue Per Mile

A metric commonly used in transportation and logistics to assess the income generated for every mile of transport provided, crucial for evaluating efficiency and profitability.